Economy of Jamshedpur

Jamshedpur is the largest urban conglomeration in the state of Jharkhand, India and is also the first well-planned industrial city of India, founded by late Jamshedji Nusserwanji Tata. It is also known as Steel City and TataNagar or simply Tata.

Jamshedpur is predominantly an industrial city with major emphasis on core and heavy industries. Jamshedpur being the first industrial city of India has set benchmarks for the development of other industrial cities like Durgapur, Bokaro, Bhilai etc. It houses some of the biggest companies of India with a majority of them being of Tata Group of companies. It is also the headquarters of a large no. of companies located here.

The setting up of Tata Steel had paved in the way for the creation of the city and Tata Steel being a pivot had led to a huge industrial outgrowth in the region. Today Jamshedpur boasts of a wide variety of products like Steel, commercial vehicles, cement, power, construction equipment, industrial equipment, vehicle engines, tin-plate with a huge number of products produced by small and medium scale industries located in the industrial region of Adityapur.

The article is mainly associated with the Jamshedpur operations of the company/industry and may not provide info about its all India operations.

Tata Steel

The largest industry/factory in Jamshedpur is that of Tata Steel (the erstwhile Tata Iron and Steel Company or TISCO). Tata Steel is the largest iron and steel producing plant in India, as well as the oldest. It was also the first private steel company of India. It is situated almost at the center of the city and occupies approximately 1/5 of the entire city area. It acts as a pivotal center for the industries of the city of Jamshedpur with a large number of them having direct or indirect linkages with it.

It was established by an Indian Parsi businessman Jamsetji Nusserwanji Tata in 1907 (he died in 1904, before the project was completed). Tata Steel was the first company to introduce an 8-hour work day as early as in 1912 when only a 12-hour work day was the legal requirement in Britain. It introduced leave-with-pay in 1920, a practice that became legally binding upon employers in India only in 1945. Similarly, Tata Steel started a Provident Fund for its employees as early as in 1920, which became a law for all employers under the Provident Fund Act only in 1952. Tata Steel's furnaces have never been disrupted on account of a labour strike and this is an enviable record.

The plant in Jamshedpur is considered to be one of the best not only in India but the entire world. It has won numerous awards for that like World’s Best Steel Maker for three times by World Steel Dynamics,[1] Prime Minister's Trophy for Best Integrated Steel Plant for a record five times,[2] world-renowned Deming Prize for major advances in quality improvement any many more.

The current capacity of the Jamshedpur plant is 6.8 MT(Million tonnes) which is going to be upgraded to 10 MT by Dec 2012.[3] Currently the Jamshedpur plant has 8 Blast Furnaces (to be 9 by 2012) and is an employer to some 26500 employees. Its products and services include hot and cold rolled coils and sheets, tubes, construction bars, forging quality steel, rods, structurals, strips and bearings, steel plant and material handling equipment, ferro alloys and other mineral software for process controls, and cargo handling services (through its subsidiaries)

Tata Motors

Tata Motor assembly line in Jamshedpur

It is the second major industry/factory of Jamshedpur. The Tata Motors was established in 1945, the Jamshedpur unit being the company's first unit was earlier called the TATA Engineering and Locomotive Company. It is spread over an area of 822 acres (3.33 km2) in the eastern side of the city. It manufactures Medium and Heavy commercial vehicles with all its main individual components like engines, gearboxes etc. The company also has its own township now commonly referred to as just Telco in Jamshedpur. It also maintains a Hospital for its employees open to common people as well.

The plant consists of 4 major divisions - Truck Factory, Engine Factory, Cab and Cowl Factories, and the Novus. After divestments in March 2000 the Axle and Engine plants were separated into independent subsidiaries viz. HVAL &HVTL, respectively. The plant presently has three assembly lines for manufacturing. A large part of the vehicle parts are sourced from the small and medium scale industries located in Adityapur Industrial Area.

The plant is the largest of its type in India and at peak rate can produce nearly 450 vehicles a day or 1.5 lakh vehicles a year.

Tata Power

It is a Coal fired captive power plant located in Jojobera, Jamshedpur. It is primarily for the needs of Jamshedpur and its neighboring regions. It has a capacity of 550 MW and has four units. It can be seen along with the Lafarge plant while traveling by train towards Kolkata.

Lafarge Cement

It is a cement plant located in Jojobera Jamshedpur. It was earlier called Tata Cements but was brought up by French giant Lafarge in November1999. The plant has facilities of Cement Grinding unit with separate circuits for clinker and slag grinding and Vertical Cement Mill. And now it is Asia's largest Cement Grinding Unit. The plant has a capacity of 4.6 MTPA of Cement Portland Slag Cement (PSC) and Portland Pozzolana Cement (PPC).[4]

Linde India

It was built in 1998 as BOC (British Oxygen Corporation) India and is one of Asia's largest ASUs(Air Separation plants) with a daily capacity of 1250 tonnes.[5] Its products include all types of Industrial and Process gases like liquefied oxygen, nitrogen, argon etc. The plant primarily caters to the needs of Tata Steel and is located in Burmamines, Jamshedpur. In 2013 BOC India rebranded as Linde India.

Praxair

It is an American company specializing in production of Industrial and Process gases. Its plant in Jamshedpur specially caters to the needs of Tata Steel and produces gases like oxygen, nitrogen and argon for industrial purposes. The company has two separate units one inside the plant while the other is just beside it in Garamnala, bistupur. The plant in garamnala was the newer of the two being built after demolition of some of the residential quarters of Tata Steel in 2008.[6]

The new plant would have a capacity to produce 1,800 tonnes of oxygen and 1,250 tonnes of nitrogen per day. The existing plant on the Tata Steel works premises produces 1,448 tonnes of industrial gases (including oxygen, nitrogen and argon) per day. Praxair as of 2008 had plans to set up another unit at Usha Martin, Jamshedpur.[6]

Tinplate

Tinplate or TCIL(The Tinplate company of India Limited) is a producer of tin coated and tin free steel sheets. It is headquartered in Kolkata and its works (plant) is located at Golmuri, Jamshedpur. The company was incorporated in 1920 as such. It presently has two dual processing line for ETP(Electrolytic Tinplate)/TFS(Tin Free Steel) and a Cold Rolling Mill (CRM). The company currently has some 1760[7] employees. It also has its own hospital known as the Tinplate Hospital. This is one of the oldest hospitals in Jamshedpur, started in the early 1940s. The company is now a TATA enterprise.

Telcon

THCM Erstwhile TELCON stands forTata Hitachi Construction Machinery Company Limited, it is a JV of Tata Motors, which holds 40% share, and Hitachi Construction Machinery Co. Ltd, Japan holding the balance 60%. The company commenced manufacturing of construction equipment in 1961, as a division of TELCO. In 1984, it entered into a technical collaboration with HCM, Japan for manufacturing state of the art hydraulic excavators. The facility in Jamshedpur is spread over 30 acres[8] of land and started operations in 1961.

TRF Limited

TRF Limited was established in 1962 and is a part of the Tata Group of Companies. TRF's main business areas are material handling equipment and related systems required in the infrastructure development sector. TRF has also diversified into automotive applications business recently. The company's premises are located at Burma Mines, Jamshedpur and spreads over nearly 22 acres (89,000 m2). This includes six covered manufacturing bays on nearly 21,250 square metres manufacturing a wide range of material handling equipments like travelling trippers, crushers, screens, wagon tipplers, conveyors, etc. used in infrastructure industry. The company's R & D facilities are also located in the premises along with the Bulk Material Handling division controlling the execution of its projects at various sites, i.e., NTPC Barh, NTPC Mauda, NTPC Vindhyachal, Navinagar Power, JSPL Angul, DVC Raghunathpur, NSPCL Bhilai, etc. The company also has its own mini township in Jamshedpur spread over nearly 30 acres (120,000 m2) known as TRF Nagar. It also has a school, Valley View School, supported by the Company.

Tata Ryerson

Tata Ryerson name has now been changed to Tata Steel Processing and Distribution. The company was initially set up as a 50:50 joint venture between Tata Steel, India’s largest integrated private sector steel company, and Ryerson Tull, a dominant player in the steel processing and distribution business in North America. But now it is a wholly owned subsidiary of Tata Steel. The company commenced operations in 1997 at Bara in Jamshedpur, India and now also has a plant in pune. TSPDL is in the business of steel processing and distribution. It produces hot- and cold-rolled coils, strips, plates, sheets, blanks and structurals.[9]

Timken India

Timken India Limited was initially co-promoted by The Timken Company, USA (TIMKEN) and Tata Iron and Steel Company Limited (TATA STEEL), was incorporated in 1987 as Tata Timken Limited. In 1999, Timken acquired Tata Steel's 40% equity holding and consequently the company's was changed to Timken India Limited effective 1999. The company's plant is located in bara, Jamshedpur. The company is primarily engaged in manufacture of antifriction bearings, components and related parts.[10] Initially the registered office was in Calcutta. Subsequently, on December 2, 1996, it was shifted to Jamshedpur.[11]

Tata Bluescope

Tata BlueScope Steel was established in 2005 as a 50:50 joint venture between Tata Steel and BlueScope Steel (Australia). The company manufactures and markets products in coated steel and its applications in the steel building industry. The manufacturing facility for coated steel is being set up at Bara, Jamshedpur and is expected to be operational by the end of 2009-2010.

JAMIPOL

JAMIPOL stands for Jamshedpur Injection Powder and was formerly known by this name. It was built under a joint venture company promoted by Tata Steel, SKW Stahl Metallurgie AG (Germany) and Tai Industries (Bhutan).[12] It is involved in the production and marketing of de-sulphurising compounds (DC) and offers de-sulphurisation products for the steel industry. Its plant is located in burmamines, Jamshedpur and is also headquartered there. The plant in Jamshedpur has a designed capacity of 45000 tpa of DC per year.[13]

TGS

TGS stands for Tata Steel Growth Shop (TGS).It is a division of Tata Steel Ltd. It specializes in designing and manufacturing of Plants and Equipment in India. It is spread over more than 350 acres[14] of land at Gamharia, near Jamshedpur. TGS specializes in products like steel plant equipment, diesel locomotive parts, hydro and thermal power plant equipment.

TAYO

Tayo Rolls was promoted in 1968 by Tata Steel in collaboration with Japanese companies Yodogawa Steel Works and Nissho Iwai Corporation (since merged with Sojitz Corporation). The company is in the manufacturing and supply of cast and forged steel rolls. The company's only plant is in Jamshedpur and is located at Gamaria near Jamshedpur.

Tata Pigments

Tata Pigments is a fully owned subsidiary of Tata Steel. It is the only Indian manufacturer of synthetic iron oxide pigments in the organised sector. It is engaged in the production of synthetic red and yellow oxides of iron. The company also manufactures dry cement paint, exterior emulsion paints, acrylic distempers and cement-based primers in its Jamshedpur plant.

Tata Tube Division

The Tubes Division of Tata Steel came into being in 1985, after the merger of the erstwhile Indian Tube Company with Tata Steel. The Division manufactures commercial and precision tubes at its two plants, namely, the Standard Tubes Plant and the Precision Tubes Plant. The Tubes Strategic Business Unit of Tata Steel today is the largest manufacturer of a variety of steel tubes in India with an annual production capacity of around 4,00,000 tonnes and major expansion plans on the anvil to manufacture higher sizes. The SBU has its plants situated in Burmamines, Jamshedpur with the marketing headquarters in Kolkata.

ISWP

ISWP stands for Indian Steel and Wire Products Limited. The ISWP manufactures products like wire rods, cast iron and steel based rolls and has its plant in Telco colony, Jamshedpur. After being shut for nearly 6 years, the company struck a deal with Tata Steel on December 20, 2003. It closed down in 1998 after its losses accumulated to several crore. It was then referred to the Board for Industrial and Financial Reconstruction or BFIR. At the time of takeover, the company had incurred losses to the tune of INR 78 crore.[15]

UCIL

UCIL stand for Uranium corporation of India. It is a PSU, which is in into mining of uranium and subsequent processing of it. UCIL has one of its offices in Sundernagar, Jamshedpur. It mines are located in nearby places like Jaduguda, Narwapahar and Turamdih.

JUSCO

JUSCO stands for Jamshedpur Utilities and Service Company. It is an urban infrastructure service provider mainly specializing in township management services. It was carved out of Tata Steel from its Town Services Division in 2004. The company is headquartered in Jamshedpur itself. Initially the company used to only look after the city of Jamshedpur but know has projects all over India like Kolkata, Mysore, Haldia etc. At Jamshedpur JUSCO provides civic services and maintains the city water supply, electricity supply, parks, gardens, roads, Tata Steels employee accommodation,sewage network and schools. It runs round the clock single call centre where citizens can log any service requests of complaints and the same. JUSCO is also a power distribution licensee for Seraikela-Kharasawan in Jharkhand.

Adityapur Industrial Area

Last but not the least is the Adityapur Industrial Area. It is actually an industrial belt, which lies in the area of Adityapur which is the satellite town of the city Jamshedpur. It is located at a distance of about 8 km from Tatanagar railway station and 8 km from Jamshedpur Airport. It is one of the biggest industrial belts not only in Eastern region but the entire India. Prior to Noida it was the biggest industrial belt of the country. The region mainly houses a large number of Small and Medium scale in industry with some Large scale industries as well.

AIADA stands for Adityapur Industrial Area Development Authority and is the governing body of the region and looks after the development of the industrial region.

The region has as over 1000 industrial units as of 2010.[16] The region gives direct employment to around 28000 people. The average annual production of the belt is in excess of Rs. 3,600 crores at present.[16]

References

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